November 6, 2023 4:39 pm

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Nikka Sulton

Buy-to-Let Mortgages: No Minimum Income Required. Many lenders typically demand a minimum income of £25,000 for a buy-to-let mortgage. Yet, some specialist lenders offer such mortgages with no minimum income requirement. Additionally, certain lenders exclusively work with specialist intermediaries for buy-to-let investor applications.


What is a buy to let mortgage with no minimum income?

A buy-to-let mortgage with no minimum income requirement means there’s no set income level considered unacceptable. Certain specialist lenders may even entertain buy-to-let mortgage applications without any income, provided the landlord is a current homeowner and a viable business case supports the situation.


How can I get a buy-to-let with no minimum income?

Securing a buy-to-let mortgage without a minimum income requirement can pose challenges, but it’s feasible. A handful of lenders extend such mortgages, but they have stringent eligibility criteria.

Typically, lenders may grant a buy-to-let mortgage without a minimum income if applicants can demonstrate income sufficient to sustain their lifestyle. This income can vary widely; what matters is that your financial situation supports your needs, including existing commitments like mortgage payments, while leaving room for discretionary spending.

Being financially self-sufficient doesn’t necessitate traditional employment or self-employment; it can involve living off various income sources such as a pension or disability payments.


Can you use your rental income to pay your mortgage?

Certainly. Many lenders may not accept potential rental income as proof of affordability, but you can still utilize your rental earnings to cover your mortgage repayments. Typically, lenders might require a 25% surplus income over your mortgage payment from your monthly rental income. For instance, if your mortgage costs £1,500, you might need to charge £1,875 in rent. Both you and your lender should also consider any additional expenses associated with being a landlord, such as insurance and maintenance fees.

If you opt for a Buy to Let mortgage with no minimum income requirement, your lender is more likely to include rental income when assessing your affordability. This type of mortgage could be better aligned with your financial situation.


What kinds of income can you use for a Buy to Let mortgage?

Yes. There are several income sources suitable for covering your Buy to Let mortgage repayments, including:

  • Rental income
  • Pension income
  • Government benefits
  • Bridging loans
  • Savings or funds, whether existing or gifted

It’s important to note that not all lenders accept all of these income sources. It’s advisable to research in advance to ensure you choose a provider that caters to clients with your specific financial circumstances.

At CLS, we’re the leading specialist mortgage advisors in the UK, offering access to thousands of exclusive mortgage deals unavailable elsewhere. If you’d like to learn more about how we can assist you in securing the right Buy to Let mortgage with no minimum income requirement, please don’t hesitate to reach out to us.


Can I take out a Buy to Let mortgage with no minimum income if i have a poor credit history?

While most mortgage providers prefer applicants with a strong credit history, some are open to considering cases with less-than-perfect credit profiles. A poor credit rating can result from various factors, including:

  • County Court Judgements (CCJs)
  • Bankruptcy
  • Defaults on your credit file
  • Numerous hard searches on your credit file
  • Involvement in an IVA, DMP, or DRO
  • Repossessions

Having bad credit may limit your mortgage options, but it doesn’t automatically result in loan rejection. Lenders have diverse eligibility criteria, and an increasing number of companies are willing to assess applicants with less-than-ideal credit histories.


Applying for a Buy to Let mortgage with no minimum income

Several factors come into play when applying for a Buy to Let mortgage with no minimum income. Typically, you will be required to provide:

  • Information regarding your credit history
  • Personal details, including age, occupation, and address
  • Property-specific details for the purchase
  • Documentation of your regular income or your repayment strategy
  • Information about any additional assets that could serve as collateral if needed.


Things to consider before taking out a Buy to Let mortgage with no minimum income

When making any financial decision, it’s vital to take time to evaluate if it aligns with your goals. Here are some factors to consider:

  • Pros and Cons of Landlordship: Understand the responsibilities and potential benefits of becoming a landlord. Keep in mind that you’re financially responsible for addressing tenant issues, even with a management company.
  • Property Investment Viability: Assess the viability of your investment based on the property type, location, and rental demand. Consult local estate agents for insights into your property’s potential success.
  • Saving for a Higher Deposit: Consider saving a substantial deposit to lower your monthly payments and increase your property’s equity.
  • Additional Costs: Account for extra expenses associated with being a landlord, such as letting fees, insurance, and emergency maintenance.
  • Property Management: If opting for external property management, compare services from different companies to find the one that best suits your needs.



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